berman realty sucks!!!!!!!

belzjm · November 2009

i'm sure this isn't the first post with this subject line, but i am now lamenting super savers being closed for almost a YEAR NOW with the space STILL empty!

can anyone explain why berman realty could have been so stupid as to kick out a well loved business during the midst of a recession and then let the space sit empty for an entire year on prime 7th avenue?!

it's idiotic. and i really miss super savers.

rant over.

modsquad · November 2009

FWIW, a commercial ground floor space is worth more empty in seeking a new tenant.

When and if someone comes along and wants the space, he doesn't want to deal with the prospect of some LL/Tenant hassle getting the current tenant out.

LL, who is making money of a short term or month to month lease, would only commence eviction proceedings if the new tenant committed financially to taking the space, (unlikely of course}.

Third thing is the new tenant would be held responsible for the demise of the "well loved business".

Better to be empty from the LL's perspective.

jeffrey · November 2009

And the LL gets to bring down their [property, I think] taxes on the place, as it sits empty without income.

I believe nkotsonis has mentioned this as a benefit in the past.

Assuming a new tenant comes in at some point at rates higher than what Super Savers paid (very likely, given how long SS was there)...

...in the short term the LL would get significantly higher income against a much lower property tax base (that was allowed to reset back downward during the fallow period). Note: there would also be taxes on that income, but it's worth noting that the property taxes would be lower.

Or I dunno, something like that.

modsquad · November 2009

Very true Jeffrey, File a Real Property Income & Expense report with the city, drop your taxes significantly based on vacant square footage and percent of income, bring in a new tenant with a lion's share of any tax increase clause and presto chango! a healthy bump in the base rent after the first year!

longtimesloper · November 2009

While I hate to see an empty store front, I don't miss Super savers at all, considering they were anything but. Neergard had better prices, but, yeah, nit sucks that the store is still empty

belzjm · November 2009

it seems that this tax situation should corrected. it doesn't sound right to me that landlords should be able to make more money by leaving a storefront empty than with a tenant. especially in this economic time we're living in, it seems as though closing this loophole would be a benefit to many communities. if landlords had an incentive to fill these spaces, the rents would probably go down a bit and that might in turn foster more small businesses to open up thus creating more jobs....

no?

modsquad · November 2009

It's not that they make money while it's empty, their financial damage is mitigated. Anyone has the right to protest their tax assessment, People should aggressively do so. The City certainly presses to raise taxes on commercial property located in hot markets. The taxes on a fully rented commercial property would easily equal 2 to 3 months of the rent roll (give or take). That's a lot of money and of course equals a lot of grease when it comes time to rewrite tax code. I wouldn't call it a loophole, it's just business, nothing personal.

If I was looking to rent that space I would definitely negotiate a RE tax clause with a cap or prevent that clause from going into effect for a couple of years, better yet a 10 year lease with a set increase of 3% or 4% a year. An option to renew for 5 years at current market rent would be nice too.

prezst · November 2009

personally, i miss sally, who was, i think, the manager. she was hot.

muggle · November 2009

someone mentioned that Neergard had better prices - they used to be competitive, but have you noticed that since Super Saver closed, Neergard's prices have gone up, and they stopped stocking generic brands of over-the-counter stuff? We've stopped shopping at Neergard and just go to Rite Aid & Duane Reade now. Sadly.

belzjm · November 2009

i have noticed that muggle.

neergaard is wildly expensive now and it sucks because i hate the big chains and have now found that duane reade is cheaper than neergaard. especially when you factor in that $5 off thing you get for every 100 or whatever it is.

as much as i'd like to shop at the smaller places, i'm not doing it if everything is a dollar more. duane reade has sales and is open 24 hours. neergaard doesn't and closes at 8:30.

belzjm · November 2009

here's an interesting article about this topic:

"Though rumors have circulated that property managers may actually profit from keeping a storefront vacant, Councilmember Brewer has found no evidence of tax benefits conferred to property managers who fail to rent their properties, after contacting several state and local tax authorities on the matter."

http://westsideindependent.com/2009/11/23/special-report-how-banks-took-over-the-upper-west-side/

babinsky195 · November 2009

I also suspect that the new pharmacy on 2nd and 7th ave is run by the old super savers folks. a few of the same employees. but unfortunately they've made the store more "upscale" to justify the higher prices.

muggle · November 2009

Actually, from my few visits there, I think the new pharmacy at 2nd & 7th Ave. has better prices than Neergard for household stuff like soap, shampoo, toilet paper.

tobie · December 2009

Who said Berman Realty "kicked them out"? Neergaard used to be their only competition. But as pointed out, there's Rite Aid and Duane Reade near by who are open early, late and offer club card savings to keep people loyal. In this economy it's presumptuous to think that it wasn't the business' choice to close because they're just not thriving as they used to.

longtimesloper · December 2009

Guess I haven't checked Neergard's prices since SuperSavers closed, I know they USED to be cheaper than them, But maybe they raised their prices after the reno and after SS closed down.

As for the place on 2nd Street, if they are cheaper than Neergard, then Neergard must be outrageous! I think the store is cute, the few times I have gone in there to buy things, I always end up leaving due to the high prices. i think I have purchased one ro two things in there, but not much more, Rite Aid is cheaper as is CVS, and though I would love to keep a small local business in business, I just can't do it on our budget and some of those prices.

belzjm · December 2009

"In this economy it's presumptuous to think that it wasn't the business' choice to close because they're just not thriving as they used to"

it's not presumptuous, i asked the folks at super savers when they were closing down why, and they said that the rent hike was too much for them to afford.

apparently since the space has been vacant for a year, it's too much for ANYONE to afford.

longtimesloper · December 2009

^^I hate to see that happen, there are so many empty storefronts and people closed due to rent hikes, wasn't there just an article posted about the old Royal Video spot? I guess landlords would rather have an empty space

belzjm · December 2009

yup, lts....the woman who owns the royal video spot is apparently asking $10,000 and refuses to accept any less.

considering how bad that corner looks, it's quite sad she's so unrealistic about what to expect in such a terrible economic climate.

wouldn't common sense tell you that getting say $8,000 per month for these past 2 years would have been better than sitting for years on end trying to get 10K...? makes no sense to me.

swngnmonk · December 2009

belzjm wrote: yup, lts....the woman who owns the royal video spot is apparently asking $10,000 and refuses to accept any less.

considering how bad that corner looks, it's quite sad she's so unrealistic about what to expect in such a terrible economic climate.

wouldn't common sense tell you that getting say $8,000 per month for these past 2 years would have been better than sitting for years on end trying to get 10K...? makes no sense to me.

$10k/mo = $120k/year
$8k/mo = $96k/year.

Since most commercial leases are 5-10 years in duration, you're talking about somewhere between $120k and $240k over that timeframe.

Of course, that ignores opportunity costs, etc. But some landlords haven't accepted that times have changed & are clearly holding out (witness the old Pizza place on 5th ave & Union, empty since Feb08).

Other possibility - if any of these properties changed hands recently, it might be in the lender's agreement with the new owner that they get at least $x/mo on any new leases - they may be stuck by their loan covenants.

muggle · December 2009

Re ^: if any of these properties changed hands recently - any new owner who thinks they can get rents based on the totally fake real estate bubble is in for a rude awakening. Wow, a store can't sell enough pizza slices/haircuts/home decor objects/whatever to pay that rent. You don't need to be in high finance to figure that out. What that means is these people paid too much for the properties.

berman realty sucks!!!!!!!

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